Udaan Raises $75M in Series G Round, Maintains $1.8B Valuation

According to CEO Vaibhav Gupta's announcement during a company town hall, B2B e-commerce platform Udaan has secured $75 million in its Series G funding round, with an additional $25 million expected in the next quarter. The round, which maintains the company's valuation at $1.8 billion, was spearheaded by London-based M&G Plc, with participation from existing investor Lightspeed Venture Partners.

The Bengaluru-based startup plans to deploy fresh capital to improve customer experience, expand market reach, strengthen vendor relationships, and enhance its supply chain and credit capabilities.

This funding follows Udaan's Rs 300 crore debt financing round in October 2024, which Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital backed. The company had previously raised $340 million in its Series E round, led by M&G Plc.

Founded in 2016, Udaan has built a substantial presence in India's B2B e-commerce space, serving over 25,000 sellers and 3 million retailers across various categories, including medicines, lifestyle products, electronics, and FMCG goods. The platform currently operates in more than 900 cities nationwide.

Udaan's growth trajectory is facing many challenges. In FY24, Udaan reported only a marginal increase in revenue to Rs 5,707 crore, following a substantial decline in FY23 when revenue halved to Rs 5,609 crore from Rs 9,900 crore the previous year. The company has also undergone strategic shifts, reportedly discontinuing several categories, including electronics and fashion, while experiencing senior-level departures, including a founder leaving the board in 2024.

The latest funding round comes at a crucial time as Udaan works to strengthen its market position and drive toward profitability in India's competitive B2B e-commerce sector.